busting early seems inevitable

L1: busting early seems inevitableWith an IRA variable annuity contract I have been taking withdrawals since 2000 under the rules of 72t. This was at age 40 and at that time was an annual withdrawal of 7%. Since starting at the beginning of the stock market free fall, it has now become a withdrawal of about 13%. I find it difficult to understand how I can survive this without going bust and further don’t understand how the insurance company could have dervived at my percentage without a certain level of confidence in it lasting. Is there no level of responsibility and/or no way for an ammendment to the withdrawals without penalty when bust seems so certain. It seems a break should be given when one wished to address it early on. I would appreciate your thoughts. Thank you.2002-06-18 13:11, By: retired40onbadadvise, IP: [127.0.0.1]
L2: busting early seems inevitableI have no idea what assumptions the insurance company used (you should have something in writing) but they may very well have been valid at the time you initiated the plan.The problem with many of these plans is that the interest assumption was just set too high based on the time periods involved. At age 40, you had a minimum or 20 years – any interest assumption above the 7% to 8% range was probably too high – it’s tough to get a consistently high return as the time span increases.If you think the plan is going to go bust, you may want to get professional advice and weigh the cost of busting the plan now or busting sometime in the future.While there are PLRs pending that deal with running out of funds, there have been no positive rulings. The final regs would have been the perfect place to correct the problem, the final regs mention 72(t), but no action was taken.2002-06-18 13:36, By: Gfw, IP: [127.0.0.1]

L2: busting early seems inevitableJust a note from someone in a “fix” very much like your own. If you find any help, I hope you will post an update.Best regards.2002-06-27 14:56, By: Babyoaks, IP: [127.0.0.1]